BMO Bank of Montreal
TSX : BMO
NYSE : BMO

BMO Bank of Montreal
BMO Financial Group

BMO Financial Group

July 08, 2010 12:40 ET

BMO Lowers Credit Card Costs for Small Business Owners with Introduction of Two New MasterCard Products

- New no-fee BMO® AIR MILES® MasterCard®(i) for Business eliminates $60 annual fee and extends 1/$20 rewards rate to all cardholders.

- New no-fee BMO Preferred Rate MasterCard for Business offers a lower interest rate than most no-fee cards in the market.

- Complimentary membership in BMO Premium BizAssist program saves Business owners an additional $149 per year.

- Cardholders can choose an even lower interest rate-12.9 per cent-for a nominal yearly fee(i)

TORONTO, ONTARIO--(Marketwire - July 8, 2010) - BMO Bank of Montreal (TSX:BMO)(NYSE:BMO) today introduced two new credit cards that give small business owners low rates, low fees and simple choices:

  • a no-fee AIR MILES MasterCard for Business that features higher rewards, rebates and discounts and free access to business support networks and tools; and
  • a no-fee Preferred Rate MasterCard for Business that features a 17.5 per cent interest rate -- lower than most no-fee cards in the market today.

"Busy entrepreneurs want low rates, low fees and simple choices. And if they collect rewards, they want a card that is accepted virtually everywhere and helps them maximize their rewards without sacrificing a low interest rate. They can get all of that with a BMO MasterCard for Business," said Nancy Marescotti, Director, Payments Marketing, BMO Bank of Montreal.

The BMO AIR MILES MasterCard for Business card replaces two predecessor cards*, eliminating the $60 fee and doubling the amount of rewards earned from 1 reward mile for every $40 spent on the card to 1 reward mile for every $20. 

Unlike most other business cards, all BMO MasterCard for Business cards have built-in features designed to help busy small business owners run and protect their business:

  • Complimentary Premium BizAssist membership (valued at $149 annually):
    • More than $10,000 in potential business savings from BizAssist partner suppliers
    • Online network of more than 500,000 business owners and entrepreneurs
    • Online business plans, articles, letters, tools, forms, and small business calendar of events
    • IDefense, which provides information on identity theft prevention and assistance in the event that the small business cardholder becomes a victim
    • 24/7 virtual support by phone or online
  • New MasterCard Easy Savings:
    • Cardholders receive an automatic rebate on card purchases at select merchants, including Continental Airlines.
    • Cardholders require no coupons or codes, and the savings are automatically included on their monthly billing statements. 

"One of the biggest challenges for small businesses owners is managing expenses and cash flow," added Marescotti. "A BMO MasterCard for Business can help with both. It makes it easier for business owners to get control of their cash flow and analyze their business spending, and can deliver significant savings through enhanced rewards, rebates and merchant discounts as well as through the elimination of an annual credit card fee." 

* See details in 'Backgrounder' table below

BACKGROUNDER

Below is an outline of the new product suite that BMO announced for BMO MasterCard for Business offerings:

Product  Features
   
AIR MILES CARDS  
BMO AIR MILES MasterCard for Business NEW FEATURES
 • NO ANNUAL FEE  (elimination of "Silver" fee of $60)
 • 1.5x AIR MILES at Shell locations in Canada
 • 1.5x AIR MILES reward miles at National Car Rental and Alamo Rent A Car locations worldwide
 • Up to 25% discount at National Car Rental
 • Employee cards $5/yr
   
 • Earn 1 AIR MILES reward mile for every $20 in card purchases (no change)
 • Purchase protection and extended warranty (no change)
BMO Gold AIR MILES  MasterCard for Business  • Exclusive 25% discount on the number of AIR MILES reward miles required to fly (increase from 20%). For example, a flight that normally requires 2,000 reward miles will require only 1,500 reward miles with the Gold AIR MILES MasterCard for Business
 • Built in Collision Damage Waiver – covers damage, theft and loss-of-use of rental car
 • Travel insurances: lost document and ticket replacement, lost luggage assistance etc.
 • Double AIR MILES reward miles at  Shell, National Car Rental and Alamo Rent A Car locations worldwide
 • Up to 25% discount at National Car Rental
   
 • $119 Annual fee for owner (increase from $105)
 • Earn 1 AIR MILES reward mile for every $15 in card purchases (no change)
 • Employee cards $15/yr (no change)
 • Purchase protection and extended warranty (no change)
PREFERRED INTEREST RATE  
BMO Preferred Rate MasterCard for Business NEW FEATURES
 • 17.5% interest rate
 • $0 annual fee for owner
 • Employee cards $5/yr
 • Lower interest rate option available. See below.
 • Purchase protection and extended warranty (no change)
CASHBACK CARDS  
BMO Premium CashBack MasterCard for Business NEW FEATURES
 • Additional card at no fee (previously $5 fee)
 • Up to 25% discount at National Car Rental and Alamo (previously 15%)
   
 • Free BMO  Roadside Assistance (no change)
 • $69 annual fee for owner (previously $60)
 • Employee cards $5/yr (no change)
 • 1% CashBack on card purchases (no change)
 • 3% CashBack at Shell locations in Canada (no change)
 • 3% CashBack at National Car Rental and Alamo Rent A Car locations worldwide
 • Purchase protection and extended warranty (no change)
BMO CashBack
MasterCard for Business
NEW FEATURE
 • $0 annual fee for owner (no change)
 • Employee cards $5/yr (no change)
 • 0.5% CashBack on card purchases (no change)
 • 1.5% CashBack at Shell locations in Canada (no change)
 • 1.5% CashBack at National Car Rental and Alamo Rent A Car locations worldwide
 • Purchase protection and extended warranty (no change)
USD CARD  
U.S. Dollar MasterCard for Business NO CHANGES
 • Pay for U.S. purchases in U.S. dollars
 • $25 annual fee for owner
 • Employee cards $5/yr
 • Purchase protection and extended warranty (no change)
LOW INTEREST RATE OPTION  
Available on all BMO MasterCards except U.S. Dollar   12.90%
  $50 annual fee (increase from $35)
Available on Preferred Rate MasterCard   12.90%
  $25 annual fee

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